3. If the Fed holds the interest rate constant in response to an increase in government purchases,...
Question:
3. If the Fed holds the interest rate constant in response to an increase in government purchases, the money supply will
, and the impact on income will be than if the money supply were held constant.
a. increase, larger
b. increase, smaller
c. decrease, larger
d. decrease, smaller
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: